The aging of Torme Designs’ accounts receivable is shown bel…
The aging of Torme Designs’ accounts receivable is shown below. The current balance in the Allowance account is a credit balance of $25,600 Calculate the amount needed to accrue bad debt expense and prepare the adjusting entry. (10 points) Est. Uncollectible Accts. Age Interval Balance Percentage Amount Not past due 850,000 3.50% 1-30 days past due 47,500 5.00% 31-60 days past due 21,750 10.00% 61-90 days past due 11,250 20.00% 91-180 days past due 5,060 30.00% 181-365 days past due 2,500 50.00% Over 365 days past due 1,140 95.00% Total 939,200